Property investment remains to be the best and safest way to invest money to this day. With the cost of living increasing each passing year, changing lifestlyes and economy fluctuations there is need to get some sort of security in life by working hard and or investing.
Incase of unplanned unemployment, financial emergencies or disability, a property investment could help you survive. It can provide you with money to handle every day expenses and pay medical debts. Investing your money in assets such as real estate is a great way to prepare yourself and your family for the unexpected future. Investing in residential properties such as single family homes or multi-family properties, commercial properties generate money through holding the property and renting it out or selling the property after the value of the property has appreciated.
Here are major benefits of property investment:
• Being your own boss – When you decide to invest in an income property you will have full control over the investment property. You have the decision tochoose the type of property to invest, your tenants, how much you will charge for rent and how you will manage and maintain the property. Also you will decide on which finacing method for your property investment venture including cash, private money or mortgage.
• Cash Flow – Your investment has to give you a return on investment (ROI) as future financial security. Property Investment gives you potential growth on your capital and immediate return on your investment through positive cash flow. A property investment provides you with a cash flow stream as monthly rent. Cash flow is the most attractive aspect of investing in real estate and it’s usually a sign of a successful property investment.
You will receive monthly rental income from your tenants and any money left after paying your expenses will be yours. Your wealth increases as the property goes up in value over time. With the fluctuations seen in the stock market recently tells we can’t really rely on super fund and companies to take care of us after retirement. Taking your financial future into your own hands with an investment property portfolio is an important step to take.
• Tax Benefits – Property investment also offers many tax benefits in which investors are able to deduct almost all expenses related to being an owner or managing a property. Investors will also sell the property investment and reinvest the profits. It includes mortgage interests, property taxes, insurance and operation expenses.
• A House To Live In If You Need It – As the cost of living increases so do investment properties prices hence having a property investment gives you an alternate place to live in, should you need one in future i.e. In case of retirement
Other property investment benefits include:
• Building equity for the future
• Generation of passive income that is nearly tax- free money
• Provision of cash flow for retirement
• Directly impacts the community and improves the lives of people living there
• Provides a way of becoming an entrepreneur
• Owning of a physical asset
• Property owning generates wealth
• A stable investment with ongoing income